FINRA Clarifies Proposed Changes to Outside Activities Rule

Posted on May 12th, 2025 at 2:15 PM
FINRA Clarifies Proposed Changes to Outside Activities Rule

From the desk of Jim Eccleston at Eccleston Law

FINRA released a statement this week addressing misconceptions surrounding its proposed updates to the rules governing outside business activities by associated persons of broker-dealers. According to FINRA’s Weekly Update, Regulatory Notice 25-05 aims to streamline current requirements and ease unnecessary regulatory burdens.

FINRA emphasizes that the proposal introduces no new reporting or approval obligations. Instead, the proposal clarifies that personal investments in non-securities remain excluded from reporting requirements. Additionally, the proposal does not create new responsibilities for broker-dealers concerning unaffiliated investment adviser activities, nor does it impose obligations on broker-dealers for activities conducted within affiliated entities, such as investment advisers, insurance companies, or banks.

FINRA encouraged industry participants to review the full text of Regulatory Notice 25-05 and submit feedback based on the actual content rather than mischaracterizations. The comment period remains open through May 13.

 

Eccleston Law LLC represents investors and financial advisors nationwide in securities, employment, transition, regulatory, and disciplinary matters.

Tags: eccleston, eccleston law, finra

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